Lumber Liquidators Suspends Sales Of Chinese-Made Flooring
NEW YORK (CBSNewYork) -- Lumber Liquidators has suspended the sale of all laminate flooring made in China a week after disclosing that the Justice Department is seeking criminal charges against the specialty retailer in an investigation over imported products.
The flooring supplier said Thursday that it decided to suspend the sales while a board committee completes a review of its sourcing compliance program.
CBS' "60 Minutes" reported in March that the company's laminate flooring made in China contained high levels of the carcinogen formaldehyde.
As CBS2's Lou Young reported, Miami area resident Joaquin Badias was so concerned about flooring he bought from Lumber Liquidators that he pulled it up with his own hands.
"What's going to happen down the road?" he asked. "Are we going to have any more health issues? Who's to know?"
Badias said an air-quality test in his home showed high levels of formaldehyde and claims he and his wife have suffered throat irritations. He ordered the testing after seeing the "60 Minutes" report.
Watch The '60 Minutes' Report:
The company has sent thousands of air testing kits to customers since early March. It said more than 97 percent of the kits from customers with laminate flooring from China showed formaldehyde air concentrations that fell within World Health Organization guidelines.
It also said its suppliers have certified and labeled the flooring as compliant with California formaldehyde standards. But Lumber Liquidators is reviewing those certification processes.
Lumber Liquidators said last week that it has spent $2.3 million on its air-quality assurance program. The company also has said it has stopped buying Chinese laminate flooring for now, opting instead for products from parts of Europe and North America.
"Despite the initial positive air quality testing results we have received, we believe it is the right decision to suspend the sale of these products," Robert Lynch, Lumber Liquidators president and CEO, said in a statement. "We will work diligently to meet the needs of our customers and to ensure their satisfaction."
Lumber Liquidators also said last week in a regulatory filing that the Justice Department is seeking charges under the Lacey Act which, among other things, bans illegally sourced wood products.
The company's shares slipped 16 cents to close at $27.07 on Thursday. The stock had approached $70 per share in late February.
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